Borrowers, homeowners and real estate investors want to forget 2009 every happen from a real estate perspective. 2009 saw record foreclosures and significant value deterioration in the real estate market. Looking forward homeowners can expect much of the same due in part to the stall tactics used in 2009.

Real Estate 2009 in Review

The buzzwords for 2009 should include loan modification, short sale and foreclosure. 2009 saw record increases in mortgage delinquency and foreclosures. However, it also saw the lowest mortgage rates in 40 years. Combined with the aggressive loan modification policies, 2009 showed only modest increases over 2008. Unfortunately for many borrowers, lower rates and loan modifications only delayed the inevitable.

On the positive side, 2009 did bring economic stabilization at a heavy cost to the tax payers. With banks stabilized, borrowers were once again able to qualify for conforming loans. The first time home buyer tax credit and the low mortgage rates allowed many renters to become homeowners at very affordable prices.